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The USA and China have agreed on preferential trade arrangements for selected goods, creating a protected lane for products deemed non-sensitive.
U.S. and China reach preferential trade deal on select goods
Author: Cris Tolomia
U.S. Trade Representative Jamieson Greer told CNBC on Friday that Washington and Beijing have struck agreements under which a defined set of goods will move between the two economies under more favorable conditions.
Greer said the objective is to establish a protected lane for certain goods — ones that would receive better terms and remain insulated even if fresh tariffs are introduced by either government. He said the Trump administration plans to release “a lot more details” Monday about what has been accomplished in recent weeks of negotiations.
“We’ve actually reached agreement with the Chinese on a number of these things,” Greer said on CNBC’s “Squawk Box.” Among the categories he cited were American farm goods and medical devices on the U.S. side and Chinese consumer products that the administration does not regard as sensitive.
Greer offered no specifics on Friday about which products fall under the new arrangements, what tariff changes might follow, or when any of it would take effect. He described the work being done through the U.S.-China “Board of Trade” mechanism as confined to commercial matters, separate from the national security rules that govern advanced technology exports. “All those export controls that are national security issues, we take those off the table,” he said.
The “Board of Trade” framework emerged from the Trump-Xi summit in Beijing in May as a channel for handling commerce in goods neither side deems sensitive. Since then, the private sector has pressed for clarity on exactly which product categories would be eligible for reduced duties through the mechanism.
The announcement builds on a series of recent U.S.-China trade developments. The two governments confirmed an extension of a bilateral trade truce through Jan. 10 and held their first formal talks on artificial intelligence earlier this week, on the sidelines of a state visit by Xi Jinping to Washington. Treasury Secretary Scott Bessent announced the extension of what he called the “Busan Agreement,” which had kept tariffs on Chinese goods at around 20% and included a Chinese commitment to resume shipments of critical minerals. Bessent said January could bring either a broader economic agreement or a continuation of the existing arrangement beyond that date.
China’s Commerce Ministry said the AI discussions, held ahead of the Trump-Xi summit, were frank and productive and that the delegations reached agreement on several issues, according to CNBC. Bessent had also said earlier this week that China might announce commitments in the coming days to expand purchases of U.S. farm goods and open parts of its financial services sector.
Credits: TCA, LLC.